Forgot Password - Weird Redirection

I'm using 1.8.2 version of Avactis, an old version, but upgrading is a pain as I've done customisation, but please help.
When I fill out the "Forgot Password" on my test and live server, the page is redirected to a different folder.
For example on the live server
I'm on domain www.mytestexample.com and fill out the form.
I have a test version in /test
The system redirects me to www.mytestexample.com/test
On my test server I get redirected to a timeout page.
Do you know if there's a simple solution to this? Is there anything I can look into?